Despite an overwhelming consensus among the scientific community that human activity is causing climate change, most of the world's largest investment managers do not factor climate-related trends into their short- and long-term investment decision making, a new study finds.

According to a report by Ceres, a coalition of investors, environmental organizations and public interest groups, this short-sightedness is creating trillions of dollars worth of hidden risks in mutual fund and other investment portfolios, such as high energy costs, pollution, water shortages and insurance costs resulting from natural disasters. Sectors like utilities, energy, industrials, manufacturing and the automobile industry have significant exposure to climate risks, the report said.

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